Any proposed change to the welfare system can be a source of concern for individuals who rely on benefits income their loved ones and carers. Our Court of Protection team have put together a short guide to provide some clarity about how the recent proposed changes may impact benefits for those who need them most.
Stricter Tests for Personal Independence Payments (PIP)
Personal Independence Payments (PIP) are designed to support individuals in England and Wales who have difficulty completing everyday tasks or getting around due to long-term physical or mental health conditions. PIP is not means-tested and is available to those both in and out of work. This year, PIP payments will increase in line with inflation, providing some financial relief.
However, the proposals are that from November 2026, the eligibility criteria for PIP will be tightened, potentially resulting in reduced payments for many.
The assessment for PIP is based on a points system, details of which can be found online. Adjustments to the amount of points needed for a particular area of need may make it harder to qualify for the daily living component of PIP, which starts at £72.65 a week. There will be no change to the mobility component.
Additionally, the PIP assessment process will undergo a review, with more frequent face-to-face assessments for many claimants. Despite these changes, one small positive is that those with the most severe, long-term conditions will no longer face reassessments under the proposed reforms.
Scrapping the Work Capability Assessment
Under the proposed welfare changes, the Work Capability Assessment, which determines eligibility for incapacity benefits, will be scrapped in 2028. Instead, individuals applying for health-related financial support and disability benefits will face only one assessment based on the current PIP system.
This change aims to simplify the process and reduce the burden on claimants.
Impact on Incapacity Benefits Under Universal Credit
Incapacity benefits under universal credit will be frozen in cash terms for existing claimants at £97 per week from April next year. This means they will not be increased in line with inflation until 2029/30. For new claimants, the amount will be reduced to £50 per week in 2026/2027.
However, those receiving the new reduced universal credit health element after April 2026, who have the most severe, life-long health conditions, will see their incomes protected through an additional premium. This group will also be exempt from future reassessments
Welfare Changes for Young Claimants
Under the new proposals, individuals aged under 22 will no longer be able to claim the incapacity benefit top-up to universal credit unless they are “severely disabled”. Although this phrase is used, there does not appear to be a definition is the proposed changes as to what “severely disabled” means. The government plans to reinvest any savings generated from this change into work support and training opportunities for this age group. Additionally, ministers are consulting on raising the age at which young people move from Disability Living Allowance for children to PIP from 16 to 18.
Protecting Disabled Individuals
The government has outlined several measures to protect differently abled individuals who cannot and will never be able to work:
- Income protection, meaning those currently receiving universal credit health benefits, will benefit from the increased standard allowance and will not be affected by future reductions
- Extra financial support including a new premium that is proposed for individuals with severe, life-long health conditions who will never be able to work.
- Reassessments for those with life-long conditions who will never be able to work will be scrapped
Reassurance
We understand that these changes to the welfare system may raise concerns about the future of benefits for individuals with care and support needs, some of whom may lack mental capacity. Rest assured, the proposed reforms are designed to protect those with the most severe conditions and ensure they receive the support they need without the stress of frequent reassessments.
If you are concerned about a person who may lack capacity to make some financial decisions, please do not hesitate to contact our team by filling out our online contact form or by calling 03301 732 339.